Lecture Notes: ICT New Week Opening Gap (NWOG)

Introduction

• Topic: ICT New Week Opening Gap (NWOG)
• Release: February 2023 on Twitter
• Focus: Using NWOG to identify large fund fair value

Identifying the New Week Opening Gap

• Timeframe: Use a 1 or 5-minute chart
• Points of Reference:
  • Sunday's Opening Price: Usually on a lower timeframe
  • Friday's Closing Price: From the previous week
  • Midpoint: Known as "consequent encroachment"

Function and Importance of NWOG

• Purpose: Identifies inefficiencies and fair value in the market
• Liquidity Void: Absence of trading between the gap's price points
  • Example: No trading between previous Friday's close and Sunday’s open
• Historical Reference: Prices can revert to these gaps weeks or months later

Annotating and Using NWOG

• Annotate: Use a ray to mark the Friday close and Sunday open
• Fibonacci Tool:
  • Anchor Points: Friday closing and Sunday opening prices
  • 50% Level: Consequent encroachment
• Order Blocks: Identify mean threshold
• Labeling: Include dates for clarity (e.g., Sunday’s date)

Practical Application

• Example Dates:
  • February 5, 12, 19, 26; March 5, 2023
• Trading Strategy:
  • Support and Resistance: NWOG acts as these levels
  • Trend Analysis: Determine if the market is in range-bound or trending

Weekly Setup

• Recommendation: Keep at least four to five weeks of NWOG on the chart
• Chart Maintenance:
  • Update every Friday and Sunday
  • Label with a ray for closing and opening prices

Homework Assignment

• Dual Approach:
  • New Week Opening Gap Actual: Uses Sunday’s open
  • New Week Opening Gap (Standard): Uses Monday’s 9:30 AM open
• Templates: Create templates for both actual and standard NWOG

Conclusions

• Key Takeaway: NWOG is a tool for understanding market support, resistance, and fair value levels
• Next Steps: Implement on charts, and use historical data for future forecasts

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Additional Notes

• Algorithmic Reference: Algorithms use NWOG for fair valuation
• Weekly Review: Essential for traders to track market shifts
• Market Instruments: Applicable to NASDAQ, ES, Dow, Forex pairs (e.g., Euro Dollar, Pound Dollar)